Wallets:
I thought I'd do a little crypto 101 for any noobies out there. If you're reading this on Steemit, you most likely know the basics but it's always good to refresh your memory and perhaps see this explained differently.
Basic crypto 101, never store crypto on an exchange for longer than you need to make a trade/transaction. There are tons of people fishing for your passwords and personal information and exchanges will not reimburse you for stolen funds. Take your crypto's off exchanges asap. Please chime in if I missed something or have made an error.
Wallets are basically software, hardware, and or physical storage devices for you to place your crypto somewhere in your control and outside the control of a third party. Every wallet has an address. It is either in barcode form or in the form of various numbers and letters. To find your coinbase wallet address for each type of crypto, go to BTC wallet or ETH wallet or LTC wallet, click on the barcode icon and it will say scan code or my address. Select my address for your address. That address is where can send that respective crypto currency. Do not send the incorrect crypto to the wrong crypto wallet address. I'm actually not sure what happens, but I wouldn't be surprised if that crypto is "lost" forever. Always do small test sends for new wallets. I would recommend sending a small test amount from your exchange wallet, to your off exchange wallet. Once the token/coins arrive, then send the rest. Better safe than sorry. Also, for noobies, you can send ANY amount of crypto you want. You can send 1 full bitcoin, 0.1 BTC, 0.001 BTC, 0.000000001 BTC, etc. Exchanges don't require you to purchase full amounts of crypto and therefore you are not required to send full amounts of crypto. Very different from stocks as you can't sell half a stock or 3.43 shares of Apple.
Software wallets on sometimes known as hot wallets that allow you to take you crypto off exchange and onto a secure website and or software you can download. These wallets provide you with private keys and back up code phrases that must be written down, printed, and documented as they will NEVER be provided again. If you forget your private key(password) you can use your back up code phrases that will help you back up your crypto wallet details and get you back in. If you lose or forget your code phrases, the crypto is gone forever. Coinbase has wallets on the exchange itself for your own personal use as well. Those are the least secure of wallets as they only require your password.
(note: always enable Google 2FA and have it done through the app, not texted to your phone)
Hardware wallets as wallets that have custom built hardware devices for you to store your crypto offline and in a tech storage device that is heavily encrypted. You basically send your crypto to an external USB like device and unplug it and store it away in a safe. It still requires private keys and back up codes as hot wallets but they can't be broken into until somewhere physically obtains the hardware wallet, is able to extract the private key, and then the back up code. This is also assuming they know how to work these hardware wallet devices. Below are the 2 most popular hardware wallets. The Trezor is a bit more expensive and first to hit the market. Both have a solid reputation and are recommended by many.
Physical/paper wallets are wallets where you print out your crypto in barcode format. If you are opting for the traditional paper wallet, always remember to print on quality paper and store in places that are not susceptible to moisture, excessive heat, or cold. Better safe than sorry right? Also, to protect your crypto further in case someone somehow managers to get a hold of your barcode/paper wallet, the wallet itself will have a private key(passcode). Store that key separately from the paper wallet.
That's all for wallets. Now go and get a wallet and get your crypto off those exchanges and into your own control!
Great post just stopping by to give my support. Never stop steeming and may all your steem be fire.
Thanks @vmsolutionsltd ! I appreciate it all the support.
Very informative @aagent! Next week I will also be highlighting how to secure your crypto's. If I can write it in time would you like me to put a link to yours? Let me know. Happy Steeming!
Thank you @xredsoulless and that would be great! Looking forward to reading your post!
Very interesting Thank you for a very informative read
Thank you!
you are welcome
:) if somebody found Steem, they already have a wallet. Dont you think so?
That is an obvious and why I wrote that in the first sentence but always good for others in case they aren't familiar with hardware or paper wallets.
Finally some good and simple explanation! thank you! upvote